India’s National Pharmaceutical Pricing Authorities has issued a price cap on knee implants in order to reduce the cost of surgery up to 69%.
What makes this a surprising move is that the National Pharmaceutical Pricing Authority (NPPA) did not wait for the government to make the move on their own, instead using its own emergency powers to issue the change. The Indian government has already put cardiac stents on its National List of Essential Medicines.
According to the Economic Times, “The price of total knee implants made of cobalt chromium has now been capped at Rs 54,720, down 65% from its average maximum retail price of Rs 1.58 lach, data from the Ministry of Chemicals & Fertilizers showed.”
Ananth Kumar, union minister for chemicals and fertilizer, said to the Economic Times that the price cap will lead to a saving of Rs 1,500 crore per year for the people of India.
Quoting the article in the Economic Times: “According to some knee implant manufacturers, the order has left a lot of issues unresolved without which the price cuts might not be possible. One of the companies that ET spoke to said a knee implant device has a number of components, and without fixing the prices of those components, it would be difficult to gauge the price cut.”
According to a memo from the NPPA, hospitals, doctors and patients have been asked to inform the NPPA if there is any shortage of the implants capped.
For more information about the price cap, visit the NPPA’s website.
Wow. What is surgeon/hospital fees in India if cutting costs on an implant reduces total by 69%? If we were to offer an implant for free in the US, the cost of surgery still wouldn’t be reduced by 69%…